President Viktor Yanukovich has been remarkably effective in restoring the vertical hierarchy of Russian-style personal discretionary power. In economic policy, this approach was backed by Russian paternalism. Although macro-statistics look positive we recognize growing risks of a bubble that will inevitably burst, under an undemocratic political regime. More about political perspectives of Ukraine read in our new report “Too Heavy a Hand?”. The full report could be obtained through subscription at Global Source (www.globalsourcepartners.com). Trial access is available.